Ambiguity of the Position of Directors of State-Owned Enterprises (Persero): Achievements of Profits and Allegations of Corruption

DOI

10.2991/assehr.k.220204.024How to use a DOI?

Keywords

SOEs (Persero); business Judgment rule; state losses; corruption

Abstract

The management of State-Owned Enterprises (SOEs) in Indonesia has special characteristics. While business entities SOEs (Persero) are directed to seek profit in order to increase the national economy. However, venture capital SOEs derived from separated state assets provides space for SOEs (Persero) directors to be blamed for corruption charges. The problem in this research is how the position of directors SOEs (Persero) for business decisions in realizing the goals of this company. This paper is normative legal research using a descriptive analytical method which aim to explain, describe and correlate legal regulations and theories with the problems that occur. The finding shows that the character (SOEs) in Indonesia has internalized the package of state financial regulations in the company management mechanism. Losses SOEs (Persero) are associated with state losses which lead to allegations of corruption to the directors of SOEs (Persero). The guiding rule of business judgment adopted by any company’s mechanism are faced with the state financial system with a public dimension, so this principle does not necessarily become an element of defense for directors of SOEs (Persero)for adverse business decisions of (SOEs). The purpose of formation SOEs (Persero) to seek profit and benefit is not optimal, directors of SOEs(Persero) tend to make safeguard on their business decisions, given the allegations of corruption that can be leveled against them if the decision results in losses to state companies.

Copyright

© 2022 The Authors. Published by Atlantis Press SARL.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Hasrul Benny Harahap
AU  - Hikmahanto Juwana
AU  - Mahmul Siregar
PY  - 2022
DA  - 2022/02/15
TI  - Ambiguity of the Position of Directors of State-Owned Enterprises (Persero): Achievements of Profits and Allegations of Corruption
BT  - Proceedings of the Second International Conference on Public Policy, Social Computing and Development (ICOPOSDEV 2021)
PB  - Atlantis Press
SP  - 148
EP  - 153
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.220204.024
DO  - 10.2991/assehr.k.220204.024
ID  - Harahap2022
ER  -